Clippers Buyer Will Pay More Than Sterling…More Like a Pile of Gold
Current Clippers owner Donald Sterling paid a mere $12 million for the team over 30 years ago. The price that he’ll receive, should he be forced to sell the team, will be fodder for discussion in college finance classes for years to come.
A recent Journal of Accountancy article explores the factors that could be considered by the prospective buyer. Emotion is one of the unique issues influencing the price for the possible sale of the LA Clippers franchise. Some businesses or industries definitely attract buyers that aren’t necessarily what we’d call “financial buyers”. In other words, the bottom line isn’t necessarily the bottom line for them. The lure can be the love of food or the idea of opening a restaurant to share the family manicotti recipe. The romance of owning a winery can be intoxicating…literally and figuratively. If you’re a sports fanatic, maybe you’ve fantasized about the excitement of sitting courtside and reaching out to snag a high-five from a sweaty, jersey-wearing employee after making the game-winning 3-pointer. Read more about the things you should be thinking about before you place your bid for the Clippers…or any other business that you’re shopping for.
Call our valuation team when you’re assembling your all-star line-up for a possible business acquisition or sale. With expertise and experience, we’ll provide some game-changing plays and “assists” to help your team to pull off a win. Enough puns? Yup.
This blog post is a summary and is not intended as tax or legal advice. You should consult with your tax advisor to obtain specific advice with respect to your fact pattern. Based on the most recent “best practice” standards for tax advisors issued by the Treasury Department, commonly referred to as Circular 230, we wish to advise you that this blog post has not been prepared to be used, and cannot be used, to provide assurance that penalties which may be assessed by the IRS or other taxing authority (including specifically section 6662 understatement penalties) will not be upheld.